GST Annual Returns: Everything You Need to Know
Goods and Services Tax (GST) was introduced in India on July 1, 2017, with the aim of simplifying the tax structure and ensuring transparency in the system. Under GST, every registered taxpayer has to file various returns, including the annual return. In this article, we will discuss everything you need to know about the GST annual return.
What is a GST Annual Return?
A GST annual return is a summary of all the transactions made by a registered taxpayer during a financial year. It contains details of all the inward and outward supplies, taxes paid, and the input tax credit (ITC) claimed. It is a way to reconcile the tax paid and the ITC claimed by a taxpayer during a financial year.
Who is Required to File GST Annual Return?
Every registered taxpayer under GST, except for certain specified categories, is required to file an annual return. This includes businesses that are registered under the regular scheme, composition scheme, and those that are required to deduct or collect tax at source.
What are the Different Types of GST Annual Returns?
There are three types of GST annual returns:
- GSTR-9: This is the annual return for regular taxpayers.
- GSTR-9A: This is the annual return for taxpayers registered under the composition scheme.
- GSTR-9C: This is the reconciliation statement for taxpayers whose turnover exceeds Rs. 2 crores during a financial year.
What is the Due Date for Filing GST Annual Return?
The due date for filing GST annual return for a financial year is December 31st of the following year. For example, the due date for filing the annual return for the financial year 2020-21 is December 31, 2021.
What are the Consequences of Non-Filing or Delayed Filing of GST Annual Return?
The consequences of non-filing or delayed filing of GST annual return include the following:
- Penalty: A late fee of Rs. 200 per day (Rs. 100 under CGST and Rs. 100 under SGST) is levied for each day of delay, subject to a maximum of 0.25% of the taxpayer's turnover.
- Limited Input Tax Credit: If the annual return is not filed, the ITC claimed by the taxpayer will be restricted to 5% of the eligible credit.
- Legal Action: The taxpayer may also face legal action and prosecution for non-filing or delayed filing of the annual return.
What are the Details Required for Filing GST Annual Return?
The following details are required for filing GST annual return:
- Basic Details: These include the taxpayer's name, GSTIN, and financial year for which the return is being filed.
- Outward Supplies: The details of all the outward supplies made by the taxpayer during the financial year.
- Inward Supplies: The details of all the inward supplies received by the taxpayer during the financial year.
- Tax Paid: The details of all the taxes paid by the taxpayer during the financial year.
- ITC Claimed: The details of all the ITC claimed by the taxpayer during the financial year.
- Other Details: Any other details required by the form.
What are the Steps to File GST Annual Return?
The following are the steps to file GST annual return:
- Step 1: Log in to the GST portal using the taxpayer's credentials.
- Step 2: Go to the Returns Dashboard and select the financial year for which the return is being filed.
- Step 3: Select the type of return (GSTR-9, GSTR-9A, or GSTR-9C) and click on 'Prepare Online'.
- Step 4: Fill in the details required in the form and save the draft.
- Step 5: Once all the details are filled, click on 'Preview' to check the details entered.
- Step 6: If all the details are correct, click on 'Submit' to file the return.
GST annual return is an important document that every registered taxpayer has to file to reconcile the tax paid and the ITC claimed during a financial year. It is important to file the return on time to avoid penalties and restrictions on ITC. We hope this article has helped you understand the GST annual return and its importance.
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